Where to store your Bitcoin keys?
Which are the most secure places to store your Bitcoin keys? Exchanges? Hot wallets? Hardware Wallets? Paper Wallets?
There are multiple places where to store your Bitcoin keys. Which of them are the best options? There isn’t a single answer to that question, but with these suggestions of the expert Andreas Antonopoulos, we can help you to decide.
Let’s explore all the options you have, sorted from the less recommended to the most recommended.
Exchanges: Not your keys, not your coins
Who controls the keys? If you control the keys, then you are the owner of the coins. Given that Exchanges have your keys, you are not the real owner of your coins. Exchanges are not wallets, just use them to trade. Don’t leave your money on exchanges longer than you have to.
Paper Wallets: Obsolete technology
A paper wallet contains a private key and the wallet address written on paper. Paper wallets were very popular at the beginning but they are NOT recommended anymore, because they are now obsolete technology.
Desktop Wallets: Usually insecure places
Your desktop computer is probably one of the most insecure places to install a hot wallet. Bugs on the operative system, trojans installed and many other reasons can compromise your coins. So for most people, it’s a bad idea to install a hot wallet there.
Mobile Wallets: Your second-best option
Mobile devices are much more secure than desktop computers, so If for any reason you can’t buy a hardware wallet, then your next best option is a mobile wallet.
Hardware Wallets: The most secure place
A hardware wallet (AKA cold wallet) is currently the most secure place to store your bitcoin.
If you have concerns regarding how much you can trust a hardware wallet, you can listen to Andreas opinion:
Remember that you should always buy a Hardware wallet from the original manufacturer’s site, to avoid receiving a hacked version that could compromise your coins.
Our website compares feature by feature, the best Hardware Wallets available to buy right now:
Split your Bitcoin into tiers
Now that you understand the different kinds of wallets and their risks, you can define a strategy that suits you. One idea could be to split your Bitcoin into tiers
- Cold Tier. One or several hardware wallets. PIN-protected, passphrase protected, and properly backed up with mnemonic phrases. Here you could have large amounts of Bitcoin you don’t plan on using for a long period of time.
- Warm Tier. Multi-signature multi-party or multi-factor wallets. Here you could have a small amount of weekly operating cash to use for your business.
- Hot Tier. Hot wallets on your phone for daily transactions. One rule could be to never keep in your hot wallet more than you are comfortable keeping in cash in your physical wallet as fiat.
WORST ways to store your bitcoin
To finalize, let’s resume the worst ways to store your Bitcoin:
- A custodial service (for example, an exchange) accessed by web without 2FA
- A non-custodial accessed by web without 2FA, for example, web wallets
- A non-custodial wallet installed on a very poorly-secured desktop computer
- A paper wallet
How to Safely store your Hardware Wallet Seed Phrase
In the following article, you can find some good practices to safely store your Hardware Wallet Seed Phrase:
About Andreas Antonopoulos
Andreas M. Antonopoulos is an acclaimed author, speaker, educator, and one of the world’s foremost bitcoin and open blockchain experts. Andreas makes complex subjects accessible and easy to understand. He is known for delivering electric talks that combine economics, psychology, technology, and game theory with current events, personal anecdotes, and historical precedent — effortlessly transliterating the complex issues of blockchain technology out of the abstract and into the real world.
In 2014, Antonopoulos authored the groundbreaking book, Mastering Bitcoin, widely considered to be the best technical guide ever written about the technology. His second book, The Internet of Money, unveiled the “why” of bitcoin — and became a bestseller as did the follow-up books The Internet of Money Volume Two, and The Internet of Money Volume Three. His most recent book Mastering the Lightning Network explains Bitcoin’s second-layer payment network. His books have been translated and published in 14 languages so far.
You can find all his books at The Bitcoin Hole:
The Internet of Money - Volume Two
A collection of talks by Andreas M. Antonopoulos
thebitcoinhole.com
Visit our Website
With so many hardware wallets on the market, it can be challenging to choose the right one for your needs. That’s where our Hardware Wallet Comparison TheBitcoinHole.com website comes in. You will find the most comprehensive and honest resource for comparing the features of the top hardware wallets.
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